Born from war-time math
Modern GDP was built in the 1940s so governments could track the wartime economy—Simon Kuznets warned not to confuse it with “well-being.”
Origin story
GDP Calculator — Expenditure & Income Approaches
Options
Shown before numbers in results.
Choose the scale you’re entering numbers in.
Expenditure approach
GDP = C + I + G + (X − M)
Resource Cost–Income approach
GNP = Compensation + Proprietors’ Income + Rental Income + Corporate Profits + Net Interest
GDP = GNP + Indirect Business Taxes + Depreciation + Net Income of Foreigners
Results
Tip: Use the same currency & scale across all inputs. The “statistical discrepancy” is the difference between the two methods due to measurement/timing.
GDP: Frequently Asked Questions
What is the Expenditure approach?
It totals spending on final goods and services: GDP = C + I + G + (X − M).
What is the Resource Cost–Income approach?
It aggregates incomes from production (compensation, proprietors’ income, rental income, corporate profits, and net interest) and includes adjustments like indirect business taxes, depreciation, and net income of foreigners to reconcile with GDP.
Should both methods match?
Conceptually yes—spending equals income. Small differences may appear due to measurement and timing.
Privacy
All calculations are performed locally in your browser; nothing leaves your device.
5 Fun Facts about GDP
Unsold goods still boost GDP
Inventory you don’t sell this quarter shows up as investment. Warehouses filling up can make GDP rise even when shoppers stay home.
Inventory quirk
Imports aren’t “subtracted” losses
The −M term isn’t a penalty—it just cancels imported items already counted in C, I, or G so we don’t double-count foreign production.
Trade puzzle
Huge shadow economies
Some countries’ underground economy is estimated at 20–30% of GDP. Cash-only side gigs often vanish from the official tally.
Hidden output
Satellites as auditors
Economists compare nighttime lights from space with reported GDP—brightening cities can flag under-reported growth (or power outages).
Space checks